Question
Cinqua Terra Incorporated issued 10-year bonds three years ago with a coupon rate of 8.50% APR. The bonds pay semi-annual coupons, have a face value
Cinqua Terra Incorporated issued 10-year bonds three years ago with a coupon rate of 8.50% APR. The bonds pay semi-annual coupons, have a face value of $1,000 each and were issued at par value. Cinqua Terra bonds currently trade at $1,131.00. Given your answer to the 6-month return, what is the yield to maturity (as an EAR) for holding the bond?
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Practical Financial Management
Authors: William R. Lasher
7th edition
128560721X, 9781133593669, 1133593682, 9781285607214, 978-1133593683
